Revenue Note for Guidance

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Revenue Note for Guidance

17 Schedule C

Summary

Schedule C provides for the deduction of income tax at source from certain interest, annuities, dividends or shares of annuities payable in the State out of public revenue.

Details

Definitions

(1) The definitions of “banker”, “coupons”, “coupons for any foreign public revenue dividends”, “dividends”, “foreign public revenue dividends”, “public revenue” and “public revenue dividends” in section 32 apply for the purposes of Schedule C.

The Schedule C charge

Tax under Schedule C is charged —

  • on profits arising from public revenue dividends (dividends in the context of Schedule C means interest, annuities, dividends and shares of annuities) payable in the State in any year of assessment. Public revenue includes the public revenue of the Irish Government and of any foreign Government and also the revenue of any public authority or institution in any foreign country (for example, interest on U.K. government stocks);
  • in respect of public revenue dividends (other than dividends payable out of the public revenue of the State) payable elsewhere than in the State where a banker or other person in the State obtains the payment of the dividends by means of coupons received from another person;
  • on the proceeds of the realisation by a banker in the State of coupons for any public revenue dividends (other than dividends payable out of the public revenue of the State) payable elsewhere than in the State which the banker pays to, or to the account of, any person;
  • on the purchase price paid by a dealer in coupons for coupons for any public revenue dividend (other than dividends payable out of the public revenue of the State) payable elsewhere than in the State, except where the purchase is made from a banker or another dealer in coupons.

The Schedule C charge does not extend to annuities which are not of a public nature.

The tax is to be charged on every full euro of the annual profits, etc, charged.

(3) The obligation to withhold tax does not apply to a banker by virtue only of the banker clearing a cheque or arranging to have a cheque cleared.

Relevant Date: Finance Act 2019